William McConnell making his return to The Businessuite Top 10 at number 5, following a number 1 ranking in 2006 and 14 for 2008 indicated in his report to shareholder that “The Group Statement of Comprehensive Income shows that for the financial year ended September 30, 2010, the Group returned Operating Revenues of $25,974.7 million and a Profit Before Tax (PBT) of $3,589.0 million. Compared to the previous year, the Group achieved both revenue growth as well as an increase in profitability. Operating Revenues increased by $1,062.4 million or 4.3% whilst PBT increased by $722.9 million or 25.2%.

The 4.3% growth in revenues that was mentioned above was fuelled by the Liquors, Rums, Wines & Sugar and the Transportation Services Segments. The former achieved growth of $1,312.8 million or 8.5% and the latter $435.8 million or 32.7%. Apart from these two segments, the General Insurance Segment which returned a marginal growth of 1.9% was the only other to have achieved an increase in revenues over last year. The Investments and General Merchandise Segments suffered declines over last year, of 42.6% and 8.8%, respectively.

For the flagship segment of the Group, Liquors, Rums, Wines & Sugar; although local case sales reduced by 4.3%, the sales mix and the impact of price increases taken in the prior year assisted in bolstering revenues. On the international market, we experienced significant growth of approximately 14.5% in case sales, particularly in the NAFTA and European regions, thereby increasing revenues over last year.

The agricultural operations had a disappointing year.

Following from a reduction in cane supply, the sugar production decreased by 8%. For the Transportation Services Segment, both the Automotive Division and the cargo and aircraft handling operations of AJAS experienced increases. For the Automotive Division, in particular, increased sales of Ford and Subaru motor vehicles contributed to the overall improvement in new unit’s sales. For the aircraft handling operations, the number of flights handled increased by 20%; whilst freight movement for the year achieved an increase of 10%. Compared to last year, the General Insurance Segment experienced an increase in premium income and a decline in its investment income, both of which are included in revenues. Of all the segments, General Insurance was most impacted by the Jamaica Debt Exchange Programme.

Gerald Yetming, Chairman of The Board of Lascelles, deMercado & Co. Ltd is his 2010 report to shareholders sought to calm fears and doubts by making the following statement “The promise in last year’s statement that there would be no fire sale of CL’s assets has been fulfilled. This remains the case. You may be assured that all decisions affecting your Group or any part of it will be taken by your Board, acting in the best interests of your Group.”

By July 29, 2011 William McConnell was back in the news leading a group of investors including Pan-Jamaican Investment Trust engineering a takeover of Lascelles deMercado, three years after a majority stake was sold to Trinidad and Tobago’s CL Financial group.

The entity to be used by McConnell for the takeover is Black Sand Acquisition Inc, a company registered in St Lucia and chaired by McConnell.

Outlining the rationale for the takeover, Pan Caribbean Financial Services principal broker for the take-over bid, said Lascelles is controlled by CL Spirits Limited, a subsidiary of the CL Financial group, a financially distressed conglomerate currently under management of the Trinidad and Tobago government and it’s Central Bank. On July 24, it said, CL Spirits defaulted on US$342 million of notes issued in Trinidad and Tobago and Jamaica and secured by a pledge of CL’s shares in Lascelles deMercado.

The BlackSand board said, among other things, that it was their belief that the future of Lascelles “is now in serious jeopardy and with it, the financial well-being of all of the company’s shareholders and, by extension, the CL Spirit noteholders.”

Black Sand is seeking to acquire not less than 90 per cent of the ordinary shares and all of the six per cent and 15 per cent preference shares of Lascelles deMercado.

An offer price of US$3.86, representing 9.4 per cent above the last closing price, will be made for each of the ordinary shares. Pan Caribbean pointed out that “the offer takes account of the fact that the stock price has not yet been fully adjusted from the impact of a recent special dividend of US$29 million” declared by Lascelles and payable last Wednesday, July 27.

Black Sand is offering US$0.29 and US$0.23, respectively, for the six per cent and 15 per cent cumulative preference shares.

Pan Caribbean said Black Sand, an international business company, has received equity commitments from a group of sophisticated investors led by Octavian Special Master Fund, L.P. and Pan-Jamaica Investment Trust.

CL Spirits, a wholly owned subsidiary of CL Financial, was the vehicle used to acquire almost 87 per cent of the ordinary stock units, priced at US$9.25, and just over 97 per cent of the preference shares of Lascelles, effective July 28, 2008.

A year later, in July 2009, the Trinidad and Tobago government assumed control of Lawrence Duprey’s CL Financial under a rescue plan launched by the Central Bank.

Black Sand said it intends to stabilise the operations of Lascelles and its subsidiaries. In its consolidated unaudited results for the second quarter ended March 2011, Lascelles, among whose flagship is the rum producer J. Wray and Nephew, reported a $296 million rise in net profit to $1.54 billion, a 19 per cent increase over the corresponding period last year. BM